Tanzania Sugar Producers Seek Predictable Laws and Policies

The Tanzania Sugar Producers Association (TSPA) has welcomed recent amendments to the Sugar Industry Act, stating they safeguard domestic industrial investments and foster business confidence. The association emphasizes that predictable government policies are essential for their sector, which requires substantial capital and long payback periods.

These changes come as the government submitted the Agriculture Laws (Miscellaneous Amendments) Bill of 2026, proposing modifications to four laws, including the Food Security Act and the Sugar Industry Act. The Minister of Agriculture, Daniel Chongolo, explained that the goal is to rectify implementation shortcomings and align the laws with current social, political, and economic shifts.

Specifically, amendments to the Sugar Industry Act, Cap 251, have revised key sections, including Section 18 concerning raw sugar importation and Section 42 on repackaging. TSPA's Executive Secretary, Kennedy Rwehumbiza, highlighted that these revisions address concerns about competition and investment stability.

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But it is important to ensure that these licenses are issued to factories that are already operational to control the raw sugar entering the country, the amount processed, and the quantity of industrial sugar produced so that it is not diverted for use by people.

"We support the amendments to Section 18, which allow the Sugar Board to license factories that are already operational to import and process raw sugar for industrial use," Rwehumbiza stated. He noted that Tanzania faces a significant deficit in industrial sugar, with annual demand around 300,000 tons, while current production, primarily from the Mkulazi factory, reaches only about 50,000 tons annually.

Rwehumbiza added that allowing raw sugar importation for local processing could attract investment in value-addition factories, boost employment, and reduce foreign currency expenditure on imported industrial sugar. However, he stressed the importance of strict controls, ensuring licenses are granted only to functioning factories to monitor raw sugar imports, processing volumes, and the final output of industrial sugar, preventing its diversion for direct consumption.

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We support the amendments to Section 18, which allow the Sugar Board to license factories that are already operational to import and process raw sugar for industrial use.